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Bitcoin Plunges to $65,000 as $1.8 Billion in Crypto Positions Are Liquidated
- Bitcoin fell to a multi-month low near US$65,000 (AU$100,750), down about 8% from Tuesday’s high, in one of the year’s largest liquidation events.
- More than US$1.8 billion (AU$2.79 billion) in leveraged positions were wiped out, including US$774 million (AU$1.2 billion) in Bitcoin long liquidations, CoinGlass data showed.
- Analysts disputed the cause, splitting between weakening Bitcoin demand, MicroStrategy’s recent selling and geopolitical risk as more than 224,500 traders were liquidated.
Bitcoin tumbled to a multi-month low near US$65,000 (AU$100,750) on Wednesday, triggering a derivatives wipeout that erased more than US$1.8 billion (AU$2.79 billion) in leveraged crypto positions and drew warnings of a deeper correction.
The drop marked an extraordinary single-day flush, with Bitcoin shedding about 8% from Tuesday’s high near US$71,300 (AU$110K) to a roughly four-month low.
CoinGlass data revealed that long-position liquidations accounted for about US$1.5 billion (AU$2.33 billion) of the total, against roughly US$180 million (AU$279 million) in short liquidations.
Bitcoin longs bore the brunt, with US$774 million (AU$1.2 billion) wiped out, while Ether longs followed at about US$440 million (AU$682 million) and Solana longs at roughly US$91 million (AU$141 million).
More than 224,500 traders were liquidated across the market.
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Analysts Split on the Cause
As a surprise to no one, market analysts disagreed over what drove the rout. CryptoQuant Head of Research Julio Moreno stated: “The ongoing price correction is completely related to Bitcoin demand conditions and has nothing to do with stocks, oil, or macro data.”
Analyst Lark Davis identified six contributing factors, characterising Bitcoin’s four-year market cycle as the primary one, while analyst Ted Pillows warned that a break below the US$65,000 (AU$100.7K) support could open the door to fresh lows.
Retail traders fixated on Michael Saylor’s disclosed sale of 32 BTC from MicroStrategy’s holdings of more than 840,000 BTC. Though numerically minor, the sale was treated as symbolically significant.
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Author
José Oramas
José is a journalist and translator with a keen interest in blockchain and cryptocurrencies.
